The Central Board of Indirect Taxes and Customs (CBIC) has notified a hike of Rs. 6 and Rs. 12 on petrol and diesel as the rate of excise duty is increased.
Domestic fuel prices in the country are set and revised by Oil Marketing Companies (OMCs) on a daily basis. The prices are based on the fuel’s benchmark average price over the last 15 days in the global market and the foreign exchange rates. Apart from OMCs, the fuel prices also varies from state to state; this happens because petrol and diesel prices depend on several local factors like freight charges and local taxes (VAT).
Domestic petrol and diesel prices have been steady since May 21 after the government announced a cut in prices. Domestic prices are likely to remain low as the taxes announced today by the government do not impact domestic fuel prices.
As per a bunch of notifications issued by the Board on Thursday, rule 18 of the Central Excise Rules, 2017 shall apply to Motor spirit, commonly known as petrol, Highspeed diesel oil and Aviation Turbine Fuel.
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